ytriay87
Level 1
05-22-2020
12:12 PM
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Should there be a place on the 1120 where I can adjust specific shareholders basis for this contribution to the business, and subsequent distributions (dividends)? The closest thing to a shareholder basis calculation I have found is Schedule M-2 The Analysis of Unappropriated Retained Earning per books.
Am I understanding you correctly in saying that the contribution should only be entered generically (not to specific shareholder) under "Capital Stock" and that the distribution should just be a reduction of retained earnings?
From speaking to other accountants who use different software, they have told me there should be a specific form for shareholder basis calculations such as return of capital.